Q A report on Industry Information-Marketing Plan of the related company or product Home, - Industry Information Industry Information. Executive Summary The purpose of this marketing plans is to assess the requirements of various strategies to generate potential income from different target markets. SZEF exclusively operates for males of all age groups. Hence there is a need to understand the market dynamics properly and tailor the strategies according to the target audience. Being an amateur in the market compared to leading brands, SZEF adopts a different strategy to appeal the customers. Having a strong customer centric approach, SZEF aims to build brand loyalty over the due course of time by adopting customer friendly policies. The marketing plan talks about various nuances required to be focused upon. The use of attractive website design drives the inbound lead generation with the effective use of call to action buttons. However it is equally important to remember that marketing plan must not financially stress the company rather it should be strategically aligned with the budget and financial position of the organization. Leaving no room for ambiguity the budgets has been meticulously prepared keeping the overheads in mind, initially focusing upon brand visibility (celebrity endorsements, influencer marketing, mall demonstrations). 1. BUSINESS OVERVIEW The business is basically about shoes of all size types exclusively for males. The company SZEF produces has a wide spectrum of size which can for kid of one year to an old man ageing 90 years. SZEF has been operating in the market since 5 years and has been successful in striking the satisfaction chord of customers by providing quality products produced with state of art and technology. In this era of fast changing landscape and immense competition, SZEF has been successfully positioned itself as brand which provides dirt free shoes. The unique coating used is resistant to dirt and dust and easily washable. The company uses competitive pricing strategy to appeal large target market and stay in line with the competitors. The company manufactures shoes like – formal wear, sportswear, and casual sneakers for all age groups. The products come with 6 month warranty and free replacement is offered in case of faulty product or manufacturing defect (especially unique coating). The company aims to spread its wing sin near future by introducing new product portfolio for males and females as well. 2. MARKET OVERVIEW SZEF operates in footwear industry especially in the Shoe segment. With the advent of technology and major changes in manufacturing industry, there can be a disruption in the footwear industry with technological integration. The integration of IOT and AI with shoes can be called as smart shoe which can track the walking and running patterns of the person and gives inputs through application. Research has been going in this segment and the market is likely to get bombarded with these tech savvy shoes in near future. This could impact the traditional products on a large scale, although everyone wouldn’t shift to this segment but a slice of market would be lost. To stay in race, there must be various changes to be brought in terms of design, innovation and pricing. If a company doesn’t plan then actually it is planning to fail. 2.1 Customer Information The company caters its products to men of all age groups. However major traction can be generated from age groups between 20-40 years. To have an edge over other brands, various designs and models would be made for these age groups as they are large in number. Understanding the target demographics forms an important part in formulating the strategy, various demographic information like age, number of males, disposable income, occupation can help in projecting the demand and devise marketing strategies. The sex ratio of Australia was 990 males per 1000 females as on 2018 and youngsters comprise most of the male population. Hence, youngsters and working people form the major target market. Consumer buying intention could be mapped with various factors like cost, quality, price, brand, freebies, warranty and guarantee, size etc. (countsrymeter, 2019) 2.2 MARKET INFORMATION The Australian footwear market is currently valued at USD 3.2 Billion. The market is expected to increase because of the increase in disposable income and changes in spending pattern coupled with upcoming fashion trends in the industry. The Australian footwear industry is expected to sky rocket to USD 3.86 billion by 2025. Based on the customer segments it was seen that women’s shoe segment formed the largest owing to trends in fashion and is followed by men. Often men feel that they are lacking behind the trend sin fashion industry and SZEF envisions to freeze this opportunity. SZEF competes with the world’s biggest players like Nike, Adidas, Puma, converse etc. A slice of cake has been ignored by many of these giant players i.e. price sensitive segment. SZEF will try to cease this opportunity by providing world class products at affordable price by devising various strategies. Importing raw material from cheap sources, local sourcing and various above the line promotions. (Hexa Research, 2018) 2.3 INDUSTRY INFORMATION The footwear industry in Australia is expected to grow at CAGR 9.1% in the period, 2019-23. While the industry has been expanding rapidly, upcoming government policies in terms of FDI rules or tax structure can affect the industry. The footwear industry is susceptible to various environmental, climate and ecological threats. Hence the new trend of sustainable management must be aligned with the core strategy rather than just being an enabler. The industry is going to witness pragmatic shift in terms of manufacturing style and packaging style owing to green concerns. (Statista, 2019) 2.4 PRODUCT & SERVICE INFORMATION SZEF offers shoes of all types exclusively for males of all age groups. The FOMO feeling is often faced by men because they feel that fashion trends for women is updated at faster pace than for men. Ceasing this golden chance, SZEF offers shoes of different variants (Formal wear, sportswear, casual sneakers). To make it more appealing, SZEF will be partnering with upcoming moves and cartoons for official merchandising partner. What makes SZEF apart from the competition is its unique policy of free replacement within 6months if the unique dirt resistant coating is proven ineffective. This drives the customer loyalty and trust factor. SZEF has a separate cell for addressing various complaints and handling feedback, customers are happy with the product and service being offered currently. Customers expect more designs and styles to be introduced in the market. Currently the company focuses on above the line promotions by airing advertisement in TV, Radios and various fitness magazines. SZEF is also having partnership with many gymnasiums across many urban cities. Seasonal offers in online channel also generates major traction. As a social responsibility, SZEF donates 0.5% of the product value to different charities and social organizations which gives a social presence and emotional appeal as well. 3. OBJECTIVES The key objectives for SZEF are:- a) To devise marketing strategies to improve the brand awareness and brand salience in the market. b) To redesign the service process for improving customer loyalty. c) To devise strategies for improving above the line promotions and various schemes catering to different market. d) To identify key Mutltibrand outlets where products can be shelved and provide visual merchandising support. e) To understand the consumer purchase intention towards branded shoes corresponding to Australian market and tailor strategies accordingly. f) To identify various online and offline channels for product sales. 4. STRATEGY SZEF will tailor strategies based on the research insights. Owing to different nature of the market in different areas it is important to craft strategies according the market nature. The strategies will be directly contributing to the top line and will be exclusively based upon the customer’s basket of buy. (Mindtools, n.d.) 4.1 PRODUCT SZEF product portfolio offers wide variety of shoes with different designs and models. Products are of high quality with appealing designs. The unique product feature which make sit stand away from competition is unique coating on shoes which makes it dirt and dust resistant. SZEF unique strategy of providing products for all age groups makes it different from other players. The kid’s shoes have been specially designed with cartoon characters and special cushion for better protection. The Suave collection is especially for officials where it can be used for office purpose. 4.2 PRICE Being an amateur player in the market, SZEF uses completive and bundling pricing strategy for its consumers. The products are priced lower than other leading brands. Bundling pricing is used when a customer likes to buy sports show along with a casual and/or formal shoe. A discount of 15% is provided when products are bundled. Upon using the membership card, customers can avail freebies or a discount 10%, this strategy can improve customer loyalty and increase repeat orders. Operating in the realm of heavy competition, SZEF ensures that effective price control strategies are implemented. (James, 2012) 4.3 PLACE SZEF uses various channels for its products. SZEF has Omni channel presence. Various distribution channels used by SZEF are:- i. Retailers ii. SZEF exclusive stores iii. Exclusive online store iv. Other e-commerce channels Having presence in various retail outlets and Multibrand outlets can be a potential driver for sales. SZEF has strategically placed its manufacturing and warehouse facilities to optimise the logistics and shipping costs involved. Having Omni channel presence will help in catering to a wide bandwidth of customers. 4.4 PROMOTION SZEF uses various ATL and BTL promotion techniques to appeal its customers. (Furman, 2019) • 4.4.1 Sales promotion – Using various techniques like loyalty programs, bundling deals, price pack deals, product demonstrations etc. (Dogra, n.d.) • 4.4.2 Adverting - Print ads in renowned magazines (fitness, corporate). Product video demonstration advertisement in various digital and offline channels. Roping in fitness celebrity as brand ambassador for sport segment. • 4.4.3 Direct marketing – Kiosk marketing in famous shopping malls and telemarketing to gymnasiums and sport centres (B2B). • 4.4.4 Online marketing – Affiliate marketing in most visited websites, improving SEO and social media campaigns with hashtags for online visibility. Instagram influencer marketing and SFS through most subscribed pages. Inbound lead generation by designing the website with proper design and various CTA (call to action) buttons. (Berry, n.d.) • 4.4.5 Public relations - Inviting fitness celebrities and corporate officials for opening ceremony of SZEF exclusive stores and new product launch. 4.5 OPERATIONAL PLAN The success of a company depends greatly upon how the products and services are rendered. The specialised grievance cell will be reporting on daily basis to avoid “we will get back to you” style of working. Effective long-term partnerships with best logistics service provider based on units rather than a fixed fees would leverage the costs and justifies the sales. As SZEF has replacement policy, the reverse logistics must be responsive to avoid any customer dissatisfaction. Owing to shrinkage in inventory and pilferage reasons, inventory management and quick checks must be deployed for avoiding unnecessary costs. Use of block chain technology in future for avoiding stockouts, thefts and other uncertain events. SWOT Analysis Strength • Strong focus on particular set of market (males) and providing for all age groups. • Focused incremental innovation. • Strong categorical growth. Weakness • Focus is limited only towards particular gender, hence potential market is ignored. • Limited marketing efforts. • Strong replacement policy may cause financial and operational stress upon the company. Weak reverse logistics network is also an issue. Opportunities • Technological integration in future(IOT, AI) • Strong growth in near future (CAGR rate). • Tier 2 cities penetration with appropriate pricing Threats • Competition from global players. • Less focus on R&D may push SZEF out of race by competitors. • Inefficient cash flow management can cause freeze in working capital management. Conclusion Marketing strategies form an important part of the Annual operating plan. The budget and effectiveness of the strategy has a direct impact upon the tolpine. Though the strategies have been designed in a fancy way, it will fail to activate the objectives if not supported by operations and manpower planning. A strategy would merely remain as a strategy is not backed by proper controlling measures.